PwC partner exits amid repercussions from Evergrande audit
PricewaterhouseCoopers (PwC) is facing a deepening crisis in Hong Kong related to the audit of China Evergrande Group.
In the coming month, at least ten partners are set to leave the firm, adding to the 20 who have departed over the past six months, reported Bloombergciting people privy to the matter.
This follows the exit of 77 partners from the Chinese mainland since December, as per the unified supervision platform of the Chinese CPA profession.
Some partners are being let go for business reasons, while others are opting for early retirement or moving to other firms, the people stated.
PwC China, locally called Zhongtian, was fined 441m yuan ($61.2m) by Chinese regulators last year for its audit work on Evergrande’s inflated financial reports from 2018 to 2020.
Additionally, the firm’s operations in China were suspended for six months, starting in September 2024. Consequently, PwC China’s revenue fell by about 11% to 6.3bn yuan in 2024.
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn March 2025, a Financial Times report revealed that PwC had delayed payments to recently retired partners in Hong Kong and mainland China, leaving multiple equity partners without their contributed capital.
The firm’s struggles are not confined to the mainland; they are also impacting its Hong Kong operations. Although PwC Hong Kong and China are separate legal entities, they collaborate closely and share business outcomes, said the people.
As of 2 June 2025, PwC had 220 partners on the mainland and 250 in Hong Kong as of 31 December 2024.
To address these challenges, PwC global sent Hemione Hudson, a senior partner from the UK, to lead the region.
The firm has been conducting internal reviews to streamline operations, further reported the news publication citing the unnamed sources.
Despite these efforts, PwC has found it difficult to retain key clients in China post-Evergrande probe, with AIA Group and Li Ning among those that have severed ties.
PwC’s Hong Kong role in the Evergrande audit is still under investigation by the audit regulator.
The firm is also facing a lawsuit in Hong Kong from Evergrande’s liquidators, who are seeking to recover investments following the developer’s default in 2021. The liquidators have accused PwC of “negligence” and “misrepresentation” in their auditing practices.
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